By Megan Sayles
AFRO Staff Writer
msayles@afro.com
Baltimore Mayor Brandon M. Scott released his preliminary budget for fiscal year 2027 on April 1. The $4.98 billion spending plan seeks to fill a $12 million structural deficit and includes $1.06 billion in capital spending— up nearly 14 percent from last year.
The proposal prioritizes investments in youth programing, infrastructure upgrades and economic development, while trimming long-vacant positions and scaling back certain reserves to balance the budget. City officials said the plan relies heavily on infrastructure spending funded by federal reimbursements and borrowing, while also preparing for the continued phaseout of pandemic-era American Rescue Plan Act (ARPA) funds.
Where the money is going
A significant portion of the spending plan directs new funding to economic development initiatives, youth programming and infrastructure improvements. Among the largest new investments is a $15 million one-time economic development fund, designed to give the city flexibility to attract businesses, support property acquisitions and help to finalize development deals that could generate jobs and broaden the tax base.
Youth-focused programs also remain a priority in the proposed budget. The plan includes $16.5 million for the YouthWorks summer jobs program, which is expected to fund roughly 8,500 positions for young people.
The proposal includes $2.3 million to expand shelter operations, reflecting the city’s ongoing efforts to modernize its homeless services system.
On the capital side, the city plans to spend more than $1 billion on infrastructure projects, including $157 million for West Baltimore United to transform the Highway to Nowhere, $20 million build a new youth sports complex, $35.3 million for the Northeast Police District and tens of millions more for bridge repairs, American with Disabilities Act (ADA) sidewalk upgrades and traffic improvements.
Much of the city’s infrastructure spending depends on maintaining its share of highway user revenue from the state, according to city officials. Fiscal year 2027 will be the fifth and final year of a boost in Baltimore’s share of statewide highway user revenue receipts.
“We have one more year— next year— to try to extend it. If we don’t get that, that number would fall back down, and we would lose some of that capital investment,” said Bob Cenname, Baltimore’s budget director. “It’s a really important thing for the city to continue to advocate for.”
How the city is saving
The budget plan is designed to close a $12 million structural deficit, meaning expenses were projected to exceed revenues. To bridge the gap, the administration is employing certain cost-saving measures.
One of the most significant changes is the elimination of more than 200 long-vacant positions across city government. Officials said the roles had gone unfilled for years and were no longer considered necessary, allowing the city to redirect funding without cutting active services.
The budget also reduces the city’s annual contribution to its rainy day fund, which has now nearly reached its target level of nearly $200 million, or 8 percent of the operating budget. With the fund built up, officials said smaller contributions are needed moving forward—freeing up money for other priorities.
Additional savings are set to come from scaling back or eliminating certain contracts, particularly in areas where the city has built up in-house capacity or no longer needs temporary support. In some cases, agencies are shifting away from working with outside vendors to reduce long-term costs.
City Administrator Faith Leach said the transition from outside contractors will take time as agencies train existing staff and modernize outdated roles.
“We’re still continuing that investment and hoping to bring more of the work in house, but right now, we have a significant number of positions that have been sitting vacant for multiple years,” said Leach. “We will go through a process where we will upgrade and modernize some of those positions. Some of them are outdated when you think about the technology we have, which may have made them harder to fill.”
The mayor’s budget will be presented to the Board of Estimates on April 22 before being sent to the Baltimore City Council for consideration, which will have until June 26 to approve a final spending plan.
